01968cam a22002417 4500001000700000003000500007005001700012008004100029100002100070245012100091260006600212490004100278500001900319520098100338530006101319538007201380538003601452700002101488710004201509830007601551856003801627856006101665c12861NBER20180319225749.0180319s2013 mau||||fs|||| 000 0 eng d1 aBettinger, Eric.10aFederal and State Financial Aid during the Great Recessionh[electronic resource] /cEric Bettinger, Betsy Williams. aCambridge, Mass.bNational Bureau of Economic Researchc2013.1 aNBER book chapter seriesvno. c12861 aDecember 2013.3 aDuring the Great Recession, the maximum federal Pell award grew over 32 percent in three years, the fastest rate in its history. Our research examines how states' need-based financial aid policies responded to the economic downturn and this Pell program. Documenting tends in state and federal policies, we show a pattern that as many as half of the states have reduced the generosity of their financial aid programs during the Great Recession. This pattern of reducing generosity in the wake of increases in the Federal Pell Grant Program is not new, and our research shows that this potential fiscal federalism has become more common since 2000. We highlight specific policies in three states that illustrate this trend. We also use student-level data from Ohio to illustrate how students' net aid packages changed in response to the combined changes in federal and state aid policy, finding that the state policy had disproportionate effects on the students with most need. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web.1 aWilliams, Betsy.2 aNational Bureau of Economic Research. 0aBook Chapter Series (National Bureau of Economic Research)vno. c12861.4 uhttp://www.nber.org/papers/c1286141uhttp://dx.doi.org/10.7208/chicago/9780226201979.003.0008